PG&E vs. SCE vs. SDG&E: Which California Utility Customers Pay the Most in 2026?

California has three major investor-owned utilities, and they don't charge the same rates. Whether you're with PG&E in the Bay Area, SCE in Los Angeles, or SDG&E in San Diego, your electricity costs are among the highest in the country — but the specifics differ significantly. This guide compares all three side by side and walks through what each utility offers to help you lower your bill.

2026 Rate Comparison

Rates are approximate averages as of early 2026 and vary by rate plan, tier, and time of use. Sources: CPUC rate filings, utility rate schedules.

SDG&E: The Highest Rates in the Continental U.S.

SDG&E customers consistently pay the highest electricity rates of any major utility in the lower 48 states. At roughly 45.7 cents per kWh, SDG&E is nearly triple the national average. Peak TOU rates can exceed 60 cents per kWh during summer evenings.

Why so expensive? SDG&E has a smaller customer base (1.4 million versus PG&E's 5.5 million) to spread infrastructure costs across. San Diego County's wildfire risk means massive spending on grid hardening and liability insurance. SDG&E also invested heavily in importing natural gas for power generation, costs that flowed through to ratepayers.

What SDG&E offers to help: SDG&E has CARE (30-35% discount for qualifying incomes), FERA (18% discount for families of 3+), Medical Baseline, and a rate comparison tool in your online account. SDG&E also offers a Level Pay Plan that averages your bill over 12 months to smooth out summer spikes — it doesn't save money, but makes budgeting easier. Details at SDG&E pricing plans.

PG&E: A Temporary Dip (Don't Get Comfortable)

PG&E is the only California utility with a projected rate decrease in 2026 — approximately 5%. This is largely due to lower-than-expected wildfire fund contributions and some regulatory true-ups, not a fundamental cost improvement. PG&E has multi-year rate increase requests pending before the CPUC that would push rates back up in 2027 and beyond.

Even with the temporary dip, PG&E's average rate of ~41.5 cents per kWh is still roughly double the national average of 18 cents. PG&E's fixed charge of ~$24.15/month took effect in March 2026.

What PG&E offers to help: CARE and FERA discounts, Medical Baseline, a rate plan comparison tool in your online account, SmartAC and other demand response programs that pay you small credits for letting PG&E cycle your AC during extreme heat events, and rebates on energy-efficient appliances. Check PG&E's rate plan finder to see if you're on the cheapest plan for your usage.

SCE: Rising the Fastest

SCE sits in the middle on per-kWh rates (~34.5 cents) but surprised many with a 2-3% rate decrease in January 2026 instead of the projected increase. However, with peak TOU rates reaching 58-74 cents per kWh, the savings are offset by extremely high peak charges. SCE serves the greater Los Angeles area, the Inland Empire, and parts of Central California — some of the hottest regions in the state, where air conditioning drives heavy summer usage.

The rate surprise: Unlike PG&E and SDG&E, SCE rates actually decreased 2-3% as of January 1, 2026, despite being in the middle of a massive wildfire mitigation program. The company is undergrounding thousands of miles of power lines in high-fire-risk areas — multi-billion-dollar capital projects that typically get added to the rate base. However, the 2026 decrease was due to specific regulatory adjustments. Going forward, expect rates to resume their upward trajectory.

What SCE offers to help: CARE and FERA discounts, Medical Baseline, multiple TOU rate plans (use the rate comparison tool in SCE My Account to find your cheapest option), rebates on smart thermostats and efficient appliances, and the Summer Discount Plan which provides bill credits in exchange for limited AC cycling during heat events.

What About Community Choice Aggregators (CCAs)?

Many California communities have formed CCAs — local energy programs that purchase electricity on behalf of residents, using the existing utility grid for delivery. If you're in a CCA area, your rates may differ from the standard utility rates above.

Some CCAs offer rates slightly below or at parity with the default utility, with a higher percentage of renewable energy. Others are slightly more expensive. Check whether you're enrolled in a CCA (it's usually the default in CCA areas — you may have been switched without realizing it). You can opt out and return to your utility's bundled service at any time if the CCA rate isn't competitive. A list of California CCAs is available at CalCCA's member directory.

Actionable Steps for Any Utility Customer

Regardless of which utility you're with, these steps can help reduce your electricity costs right now, at no cost.

1. Compare rate plans. Every utility offers multiple TOU plans. Log into your account and use the rate comparison tool to see which plan is cheapest based on your actual usage history. This is free, takes 10 minutes, and can save you 10-15%.

2. Check CARE/FERA eligibility. If your household income qualifies, you can get 18-35% off your entire bill. Many eligible households haven't applied. The income limits are higher than you might expect.

3. Check for Medical Baseline. If anyone in your household uses electricity-dependent medical equipment, you may qualify for extra electricity at the lowest rate tier.

4. Shift heavy usage off-peak. All three utilities have significantly cheaper off-peak rates (typically before 4 PM and after 9 PM). Running your dishwasher, laundry, and EV charger during off-peak hours costs 40-50% less per kWh than peak hours.

5. Check utility rebates before buying appliances. All three utilities offer rebates on energy-efficient appliances, smart thermostats, and weatherization. Check your utility's rebate page before buying anything — you might save $50 to $200.

How Solar Savings Compare Across the Three Utilities

Because utility rates differ significantly, solar savings also vary by utility. The higher your per-kWh rate, the more you save by offsetting grid purchases with solar.

For a household paying $300/month, here's a rough comparison of what solar + battery savings look like across the three utilities (assuming a well-designed system with 75-85% self-consumption).

Estimates assume solar + battery PPA with 75-85% self-consumption. Actual savings depend on system size, roof orientation, usage patterns, and specific PPA rate. These numbers are for illustration only.

These numbers grow each year because your solar rate stays fixed while utility rates continue rising. By year 5, monthly savings are typically 40-60% higher than year-1 figures.

Whether solar makes sense for you depends on more than just your utility — your roof condition, sun exposure, how long you plan to stay in your home, and your financial priorities all matter. Our NEM 3.0 guide walks through how to evaluate your specific situation step by step.

The Bottom Line

All three California utilities charge rates far above the national average of 18 cents/kWh. SDG&E is the most expensive at 45.7 cents/kWh, followed by PG&E at 41.5 cents and SCE at 34.5 cents. While SCE posted a surprising 2-3% decrease in 2026, all three utilities have rate increases already approved through 2028. Before considering solar or any major change, start with the free stuff: check your rate plan, apply for CARE or FERA if eligible, and shift heavy usage off-peak. Those three steps alone can save 10-30% with zero investment. For longer-term protection against rates that keep climbing, solar with battery storage delivers the most meaningful savings across all three utility territories.